$4\mathrm{.}1$ The following $2$ mutually exclusive projects $($Project A and Project B$)$ are available to Capital diesel Motor, a supplier of the diesel injector pumps for heavy$-$duty vehicle:

Year$/$s

Cash Flows $($A$)$

Cash Flows $($B$)$

$0$

$-220000$

$-22000$

$1$

$18000$

$7000$

$2$

$28000$

$13000$

$3$

$28000$

$15000$

$4$

$300000$

$3000$

NB: The Company requires a rate of return of $14\%$ on its investment.

REQUIRED

$4\mathrm{.}1\mathrm{.}1.$ Which project is more lucrative if the payback rule is applied? $(4)$

$4\mathrm{.}1\mathrm{.}2.$ Determine which project is more lucrative if the NPV rule is applied. $(7)$

$4\mathrm{.}1\mathrm{.}3.$ Which of the above methods is most reliable? Why? What are the shortcomings $($if any$)$ of the other two methods listed above? $(4)$

$4\mathrm{.}2$ Zanele$$s stock has an expected ROE of $12\%$ per year, expected earnings per share of R$4$ and expected dividends of R$2\mathrm{.}40$ per share. The required rate of return is $10\%.$

$4\mathrm{.}2\mathrm{.}1$ What is Zanele$$s share expected growth rate? $(4)$

$4\mathrm{.}2\mathrm{.}2$ Calculate the intrinsic value of Zanele$$s stock and its P$/$E ratio. $(6)$